Toronto stock market rises triple digits as gold, crude oil strengthen

By David Friend, The Canadian Press

TORONTO - The Toronto stock market headed higher in Friday morning trading as commodity prices gained some momentum.

The S&P/TSX composite index was ahead 114.77 points to 11,269.77, and the Canadian dollar rose 0.26 of a cent to 92.97 cents US.

On the upside were TSX gold stocks, which gained 2.2 per cent as the December bullion contract picked up $14.60 to US$1,011.40 on the New York Mercantile Exchange.

And energy stocks were lifted 2.6 per cent after oilpatch giant EnCana Corp. (TSX: ECA.TO) announced it is reviving plans to split into two distinct oil and gas companies now that some optimism appears to be returning to the global economy. EnCana shares were up $3.88 to $63.22.

The October crude contract on the Nymex moved up 37 cents to US$72.31 a barrel.

On Wall Street, the Dow Jones industrial gained 11 points to 9,638. The Nasdaq composite index was up three points to 2,087 while the S&P 500 index gained two points to 1,047.

Many traders are still expecting a pullback in the market after the extended period of gains, but some upbeat corporate news was drawing in more buyers.

FedEx, often considered a bellwether for the economy's health, raised its first-quarter earnings forecast because of stronger international shipments and cost-cuts.

In other corporate developments, Compton Petroleum Corporation (TSX: CMT.TO), a Calgary-based natural gas producer, has struck a bought deal financing to issue 120 million shares and warrants at $1.25 each to raise $150 million. The company calls the move the first major step in Compton's restructuring.

Xceed Mortgage Corp. (TSX: XMC.TO) shares popped 15 per cent after the company, originally a specialist in lending to home buyers who don't qualify for loans from Canada's big financial institutions, said it would move forward with plans to become a deposit-taking bank. Shares were up 26 cents to $1.95.

Canwest Global Communications Corp. (TSX: CGS.TO) said Thursday that its Canwest Limited Partnership subsidiary has agreed to pay all outstanding interest and fees due under the senior credit facility. Shares were unchanged at 13 cents.

Overseas markets were buoyed by strong reports out of China about industrial output, investment, loans and retail sales. Japan's market was one of the few to decline amid worries about the weakening dollar against the yen, which could pressure exporters revenues.

Other countries have also signalled growth is under way or just beginning to bloom. Canada's central bank indicated Thursday it sees growth outpacing its earlier forecasts as it maintained interest rates as low as they can go. Brazil's government said Friday it has emerged from recession with a report of second-quarter economic growth.

Britain's FTSE 100 rose 0.8 per cent, Germany's DAX index gained 0.7 per cent, and France's CAC-40 rose 1.2 per cent.